3rd Stimulus, $2800 received last March

[tsmurphy79]

Last year my wife and I got a 3rd Stimulus check. We have no kids mind you. Any way, at the end of figuring up my Federal taxes on TT Deluxe, the question is asked if we got the check. We said yes, and then TT added $2800 we have to pay in Federal taxes. I looked online and read that this is non-reported and you don't have to pay it back. So what is going on??? I have not received letter 6475 from the IRS yet, but what can that change? Did anyone else have $2800 (or $1400) suddenly added to what they owe?

[DoninGA]

The program gave you the Refund Rebate Credit until you entered the stimulus payments received.  So the Refund Rebate Credit is no longer included in your tax return.

[tsmurphy79]

I still don't understand. So the money from the 3rd Stimulus was just a loan that we all have to pay back? What am I missing here about paying all of the $2800 in taxes due?

[DoninGA]

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@tsmurphy79 wrote:

I still don't understand. So the money from the 3rd Stimulus was just a loan that we all have to pay back? What am I missing here about paying all of the $2800 in taxes due?

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No it was not a loan.

The TurboTax program does not know you received the 3rd stimulus payment so it gave you the Recovery Rebate Credit of $2,800 and included that on your Form 1040 Line 30.  When you were asked if you received the 3rd stimulus payment and you indicate Yes the amount received was $2,800, the program removed the Recovery Rebate Credit from your tax return.  You cannot get the same payment twice.

[tsmurphy79]

Aha! So instead of saying we received $2800, we can say $0 since the amount of $2800 was credited for already, right?

[DoninGA]

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@tsmurphy79 wrote:

Aha! So instead of saying we received $2800, we can say $0 since the amount of $2800 was credited for already, right?

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Sorry, no that is not right.  If you say No that means you did not receive the stimulus and the $2,800 would be included on your tax return as a credit you did not deserve.

[tsmurphy79]

Ok, so I am confused again. I did my taxes, everything was looking correct. TT asked about the 3rd Stimulus. We did receive a check back in March for $2800. We told TT we received this. TT then adjusts how much we owe to Federal +2800. So I must be missing how this all works. If I say we got the money, we have to pay that back exactly on top of what we already owe?

[DoninGA]

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@tsmurphy79 wrote:

Ok, so I am confused again. I did my taxes, everything was looking correct. TT asked about the 3rd Stimulus. We did receive a check back in March for $2800. We told TT we received this. TT then adjusts how much we owe to Federal +2800. So I must be missing how this all works. If I say we got the money, we have to pay that back exactly on top of what we already owe?

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No you are not paying it back.  All you are doing is reporting that it was received.  Since it was received you are not eligible for the Recovery Rebate Credit for the exact same amount as the stimulus payment you received.  So what you owe is exactly what it should be because no credit has been entered to reduce what you owe.

[patfitz99]

I have the same exact situation.  I did receive the 6475 letters from the IRS saying I don't have to report the $2800 to the IRS, and that's how I filled out my turboTax return.  Today I got the letter from the IRS saying I owe them $2800.    This doesn't make sense.

[VolvoGirl]

@patfitz99   Did the 2800 show up on your return line 30?  Line 30 is only if you didn't get the full amount or qualify for more.  Not the 2800 you already got.  Or do you have 2 dependents?  Did you get 2 letters?  Were they each for 2800 or for 1400 each?   If you are married you should each get letter 6475 for half so you may have needed to enter the amount you actually got which would be 5600.    

They sent the 3rd Stimulus payment (1400 per person) starting in March 2021. Double check your bank statements and check your IRS account (both accounts if married) to see what they sent you.
https://www.irs.gov/payments/your-online-account

[NCperson]

@patfitz99 - please go back and read the letter again.....where did it say you didn't have to report the $2800??????? 

can you please post the specific language  that brought you to that conclusion???

and then in TT, it specifically asked how much you received for the 3rd stimulus......

[VolvoGirl]

You don't have to show the Stimulus payment you got or letter 6475  on your tax return.  But you have to enter it in Turbo Tax so you don't accidentally try to claim it again.

It is not taxable and you aren't paying it back.  Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high.  Then near the end you enter how much you actually got so it only gives you the difference if any.  So you don't get it again.

Did you see these screens when you filled out your return?  See Critter's screen shots

https://ttlc.intuit.com/community/after-you-file/discussion/irs-notice-error-in-2021-form-1040/00/27...